[Eugene]

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694.

You’re using current rates, but 2003 was a bit different. National average rates for 5/1 IO ARMs were around 4.5%, jumbo or not. 682000 * 0.045 / 12 = $2557. Less if you have a down payment. Total housing payments (mortgage/insurance/etc.) on the order of $3600/month.

Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household.

In 2005, median household income of 92024 was around $77k.

[Eugene]

Also most all interest only loans are a 30 yr amortized loan with a 10 yr I/O period. At 6% this payment is 3410 not 3000. Second this would be a jumbo loan so that 6% rate would not happen, it would be more along the lines of 6.5% so now we are at 3694.

You’re using current rates, but 2003 was a bit different. National average rates for 5/1 IO ARMs were around 4.5%, jumbo or not. 682000 * 0.045 / 12 = $2557. Less if you have a down payment. Total housing payments (mortgage/insurance/etc.) on the order of $3600/month.

Lots of engineers, or similarly salaried professionals, perhaps even a few dual income types, pulling in a minimum of 100k per household.

In 2005, median household income of 92024 was around $77k.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Encinitas has above average incomes in this county. No argument about it. It’s just not so wealthy as to support seven-figure valuations east of 5 without exotic financing.

This particular street was built and sold off in 2003 at a median price of $682,000. You didn’t have to be a lawyer or a surgeon to “afford” that. Monthly payment on an interest-only mortgage of $682,000 is less than 3K/month.

You are a realtor, I believe you have the capability to look up existing mortgages on homes. Could you please check these houses.

621 Brae Mar Ct (sold in 2003 for 681k)
642 Brae Mar Ct (sold in 2003 for 682k)
655 Brae Mar Ct (sold in 2003 for 687k)
622 Brae Mar Ct (sold in 2005 for 840k)
610 Brae Mar Ct (sold in 2007 for 1050k)

I’ll venture a guess. All five were financed using interest-only mortgages. Furthermore, the latter two are negative amortization loans.

[Eugene]

Would you consider a 4BR/3BA 2300 sq ft nicely upgraded home built in 1987 with a 2 car garge, no HOA or Mello Roos with a nice size lot in the Encinitas/San Dieguito school district that would rent for $2500/month for $440k affordable. If not, at what price?

Right now the cheapest listed 4br in Encinitas is $569k, the cheapest listed 4br in 92009 is $550k, and the median price for all 4br houses in the area is around $700k.

So even ignoring the fact that a duplex is not a real SFR, $440k is a fluke and the market as a whole isn’t there yet.

BTW there are a few inconsistencies.
* Zillow says the duplex is 6br (3+3?)
* How can it be 4600 sq ft if neighboring houses with the same footprint are 2500-2700 sq ft?

[Eugene]

Would you consider a 4BR/3BA 2300 sq ft nicely upgraded home built in 1987 with a 2 car garge, no HOA or Mello Roos with a nice size lot in the Encinitas/San Dieguito school district that would rent for $2500/month for $440k affordable. If not, at what price?

Right now the cheapest listed 4br in Encinitas is $569k, the cheapest listed 4br in 92009 is $550k, and the median price for all 4br houses in the area is around $700k.

So even ignoring the fact that a duplex is not a real SFR, $440k is a fluke and the market as a whole isn’t there yet.

BTW there are a few inconsistencies.
* Zillow says the duplex is 6br (3+3?)
* How can it be 4600 sq ft if neighboring houses with the same footprint are 2500-2700 sq ft?

[Eugene]

Would you consider a 4BR/3BA 2300 sq ft nicely upgraded home built in 1987 with a 2 car garge, no HOA or Mello Roos with a nice size lot in the Encinitas/San Dieguito school district that would rent for $2500/month for $440k affordable. If not, at what price?

Right now the cheapest listed 4br in Encinitas is $569k, the cheapest listed 4br in 92009 is $550k, and the median price for all 4br houses in the area is around $700k.

So even ignoring the fact that a duplex is not a real SFR, $440k is a fluke and the market as a whole isn’t there yet.

BTW there are a few inconsistencies.
* Zillow says the duplex is 6br (3+3?)
* How can it be 4600 sq ft if neighboring houses with the same footprint are 2500-2700 sq ft?

[Eugene]

Would you consider a 4BR/3BA 2300 sq ft nicely upgraded home built in 1987 with a 2 car garge, no HOA or Mello Roos with a nice size lot in the Encinitas/San Dieguito school district that would rent for $2500/month for $440k affordable. If not, at what price?

Right now the cheapest listed 4br in Encinitas is $569k, the cheapest listed 4br in 92009 is $550k, and the median price for all 4br houses in the area is around $700k.

So even ignoring the fact that a duplex is not a real SFR, $440k is a fluke and the market as a whole isn’t there yet.

BTW there are a few inconsistencies.
* Zillow says the duplex is 6br (3+3?)
* How can it be 4600 sq ft if neighboring houses with the same footprint are 2500-2700 sq ft?

[Eugene]

Would you consider a 4BR/3BA 2300 sq ft nicely upgraded home built in 1987 with a 2 car garge, no HOA or Mello Roos with a nice size lot in the Encinitas/San Dieguito school district that would rent for $2500/month for $440k affordable. If not, at what price?

Right now the cheapest listed 4br in Encinitas is $569k, the cheapest listed 4br in 92009 is $550k, and the median price for all 4br houses in the area is around $700k.

So even ignoring the fact that a duplex is not a real SFR, $440k is a fluke and the market as a whole isn’t there yet.

BTW there are a few inconsistencies.
* Zillow says the duplex is 6br (3+3?)
* How can it be 4600 sq ft if neighboring houses with the same footprint are 2500-2700 sq ft?

[Eugene]

This argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.

Brae Mar Ct is not exactly the playground for the super-rich. It is 2 miles from the beach and relatively far from areas with well-paying jobs. 4br houses in this neighborhood are only going to sell for a million if 4br houses in Eastlake and San Marcos go for 800K. And those will only sell for 800K if 4br houses in Temecula go for 500K.

And, by the way, the average Joe Blow can very well afford to buy a million dollar house in Encinitas, that’s what negative amortization option ARMs are for. You could get a 1M neg-am loan with monthly payments of less than $4000 for a few years (until it resets to fully amortizing).

[Eugene]

This argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.

Brae Mar Ct is not exactly the playground for the super-rich. It is 2 miles from the beach and relatively far from areas with well-paying jobs. 4br houses in this neighborhood are only going to sell for a million if 4br houses in Eastlake and San Marcos go for 800K. And those will only sell for 800K if 4br houses in Temecula go for 500K.

And, by the way, the average Joe Blow can very well afford to buy a million dollar house in Encinitas, that’s what negative amortization option ARMs are for. You could get a 1M neg-am loan with monthly payments of less than $4000 for a few years (until it resets to fully amortizing).

[Eugene]

This argument has nothing at all to do with Joe Blow. He can wait for the prices in Clairemont or San Marcos or Eastlake to fall to 350 or 400k. Not a problem there. I don’t believe the average Joe Blow lives in Encinitas. I think that is why my point is being widely missed.

Brae Mar Ct is not exactly the playground for the super-rich. It is 2 miles from the beach and relatively far from areas with well-paying jobs. 4br houses in this neighborhood are only going to sell for a million if 4br houses in Eastlake and San Marcos go for 800K. And those will only sell for 800K if 4br houses in Temecula go for 500K.

And, by the way, the average Joe Blow can very well afford to buy a million dollar house in Encinitas, that’s what negative amortization option ARMs are for. You could get a 1M neg-am loan with monthly payments of less than $4000 for a few years (until it resets to fully amortizing).

[Author]

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